Texas § IN.2006.052 - OPTIONAL PREMIUM DISCOUNT

§ IN.2006.052. OPTIONAL PREMIUM DISCOUNT

OPTIONAL PREMIUM DISCOUNT. (a) Except as provided by Section 2006.053 , an insurer that issues a residential property insurance policy may: (1) discount the premiums that would otherwise be charged for the policy by not less than three percent if the policyholder: (A) has continuously been a residential property insurance policyholder with the insurer or an affiliate of the insurer; and (B) has not filed a residential property insurance claim during the three years before the effective date of the policy; and (2) increase the amount of the discount by one percent for each subsequent year in which the policyholder: (A) has been a residential property insurance policyholder with the insurer or an affiliate of the insurer; and (B) has not filed a residential property insurance claim. (b) This section applies to an insurer that uses a tier classification or discount program that has a premium consequence based in whole or in part on claims experience, regardless of whether any of the policies that continuously covered the policyholder was a different kind of residential property insurance policy from the policy eligible for the premium discount. (c) A residential property insurance claim under this section does not include a claim: (1) resulting from a loss caused by natural causes; (2) that is filed but is not paid or payable under the policy; or (3) that an insurer is prohibited from using under Section 544.353 . Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017 ), Sec. 2, eff. April 1, 2007. Amended by: Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636 ), Sec. 3B.040(a), eff. September 1, 2007. Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167 ), Sec. 9.040(a), eff. September 1, 2007.